Quick look at MindTree Consulting IPO

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MindTree Consulting, an international IT and R&D Services Company that delivers business and technology solutions through global software development, is open for subscription with an initial public offering, IPO of 5,593,300 equity shares of Rs 10 each at a price band of Rs 365 to Rs 425 per equity share through the 100% book building process.

The issue will constitute 15% of the post-Issue capital of the company and the net issue will constitute 13.25% of the post-Issue capital of the company.

Issue Snapshot

• Issue of 55.93 lakh shares
• Price Band: Rs 365-425
• Reserved for employees & business associates: 6.5 lakh shares
• Net issue constitutes 13.2% of fully diluted post issue capital

Objects of the Issue

• Rs 128.2 crore towards funding new development centre in Chennai
• Rs 18.9 crore towards prepayment of loans

Company Overview

• Organised into two divisions - IT services, R&D services
• IT services contributed 76.5% of total revenues in FY06; R&D contributed 23.5%
• IT services comprise consulting, application development & maintenace, data warehousing etc.
• Strong focus on mfg, travel, banking, insurance & banking industries

FY06

• Net sales up 82% at Rs 449 crore vs Rs 246 crore
• PAT up 221% at Rs 54 crore vs Rs 16.9 crore
• OPM at 17.3% vs 10.2%

H1FY07

• Net sales of Rs 287 crore
• Operating profit of Rs 54.7 crore
• OPM of 19%
• PAT of Rs 46.7 crore

Revenue Distribution

• Manufacturing: 33%
• BFSI: 18%
• Hitech: 15%
• Travel & Transportation: 21%

Key Clients

• AIG
• AVIS Budge Group
• Cendant
• De Beers
• eBay
• Franklin Templeton
• Kraft
• Unilever